A big update has come from the brokerage house for those investing in the shares of National Stock Exchange (NSE), which is considered the backbone of the Indian capital market. The country’s well-known brokerage and financial services company Motilal Oswal Financial Services has started coverage of NSE shares for the first time by releasing its research report. The brokerage firm has given a ‘BUY’ rating to the NSE stock and has set an attractive target price of ₹2,300 per share for the next one year. Compared to the reference price at the time of release of the report (₹1,931 to ₹1,945 levels), this target gives investors a strong return potential of around 18% to 19%. After this report came out, there was strong buying in NSE shares and the stock touched its new all-time high of ₹ 1,965.
Motilal Oswal, in its detailed analysis report, points out several solid structural reasons behind the long-term growth and increase in profits of NSE:
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Immense possibilities for expansion in the Indian stock market: According to the brokerage, access to capital markets is still in its nascent stage in India. By September 2026, the total number of demat accounts in the country is expected to reach 24.1 crore, which is about 17 percent of the total population of the country. However, the number of active investors (active clients) in the stock market is around 4.6 crore, which is only 3 percent of the total population. The number of active investors is expected to surge in the coming years due to increased financial awareness, digital onboarding and easier investment process, which will directly benefit NSE’s trading volumes and earnings.
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Rapidly increasing participation of young investors: The dominance of youth in NSE’s individual investor base is continuously increasing. According to the data, the share of investors below 30 years of age on NSE will increase from 22.6 percent in FY 2019 to 22.6 percent in FY 2026. 38.4 percent But has reached. The brokerage believes that as the age and income of these young investors increase, the size of their investments in the market will also increase.
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Strong hold like monopoly in the market (Dominant Market Share): NSE continues to dominate the Indian equity and derivatives market. According to FY 2026 data, NSE’s market share in cash equity (cash share trading) will be around 93 percentin equity futures 99.8 percent And in options premium (options trading) 74.7 percent Has been.
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Strong financial projections and elevated margins (FY26-FY29 Outlook): Motilal Oswal estimates that NSE’s total revenue will grow at a compound annual growth rate (CAGR) of 12 percent to ₹16,600 crore between FY 2026 and FY 2029. ₹23,400 crore Can reach. During the same period, the company’s net profit (PAT) increased at a CAGR of 13 percent. ₹15,000 crore It is estimated to happen. Also, the company’s operating margin (EBITDA Margin) is expected to increase by FY 2029. 77 percent may reach a high level of Rs. 10,000 and the Return on Equity (RoE) may improve to about 30 percent. 43 percent Expected to reach.
| Financial Parameters | FY 2026 (Base) | FY 2029 (estimated) | Potential growth/change |
| Total Revenue | ₹16,600 crore | ₹23,400 crore | 12% annual rate (CAGR) |
| Net Profit / PAT | ~₹10,400 crore | ₹15,000 crore | 13% annual rate (CAGR) |
| Operating Margin (EBITDA Margin) | — | 77.0% | Best level in the industry |
| Return on Equity (RoE) | ~30.0% | ~43.0% | +1,300 basis point jump |
| 1 year target price | ₹1,931 – ₹1,945 (reference price) | ₹2,300 per share | ~18% to 19% upside |
Along with bullish projections, the brokerage firm has also warned investors of potential risks. The total transaction fees received by NSE from securities trading is approximately 75 percent share in options trading While the share of cash market is about 12 percent and the share of futures is 11 percent. In such a situation, any regulatory restrictions or increase in tax imposed by SEBI on derivatives trading can have a direct impact on the exchange volumes. However, Motilal Oswal believes that after the new rules coming into effect from December 7, 2026, there will be stability and improvement in the volumes of options trading. It is noteworthy that apart from Motilal Oswal, leading global brokerage houses like Morgan Stanley (₹2,315 target), JP Morgan (₹2,130 target) and Jefferies are also positive on NSE shares.
(Disclaimer: This article is presented for the purpose of information and analysis of brokerage reports only. Investing in the stock market is subject to risks; be sure to consult your certified financial advisor before taking any investment decision.)